ECB Playing Dangerous Game With ‘Collective Action Clauses’ On Bonds – OpEd

By Malachy McDermott*

There is a clause to European bond sales called a collective action clause. In fact, “all bonds issued by Eurozone member states with maturities exceeding one year, issued after January 1, 2013, have a mandatory collective action clause." This clause is the first part in a dangerous game of perpetual...